2021 Wisconsin Act 1

1,98 Section 98. 73.09 (5) of the statutes is amended to read:

73.09 (5) Examinations. As provided in subs. (1) and (2), the department of revenue shall prepare and administer examinations for each level of certification. A person applying for an examination under this subsection shall submit a $20 an examination fee with the person's application. If the department administers and grades the examinations, the fee shall be the amount equal to the department's best estimate of the actual cost to administer and grade the examinations, but no greater than $75. If a test service provider administers and grades the examinations, the fee shall be the amount equal to the department's best estimate of the provider's actual cost to administer and grade the examinations, but no greater than $75. The department of revenue shall grant certification to each person who passes the examination for that level.

1,99 Section 99 . 74.315 (1) of the statutes is amended to read:

74.315 (1) Submission. No later than October 1 of each year, the taxation district clerk shall submit to the department of revenue, on a form prescribed by the department, a listing of all the omitted taxes under s. 70.44 to be included on the taxation district's next tax roll, if the total of all such omitted taxes exceeds $5,000 for any single description of property are $250 or more.

1,100 Section 100 . 74.315 (1m) of the statutes is created to read:

74.315 (1m) Amount collected from property in a tax incremental district. A tax may not be included on a form submitted under sub. (1) if the tax was levied on a property within a tax incremental district, as defined in s. 60.85 (1) (n) or 66.1105 (2) (k), unless the current value of the tax incremental district is lower than the tax incremental base, as defined in s. 60.85 (1) (m) or 66.1105 (2) (j), in the assessment year for which the tax was collected.

1,101 Section 101 . 74.315 (2) of the statutes is amended to read:

74.315 (2) Equalized valuation Amount determined. After receiving the form under sub. (1), but no later than November 15, the department of revenue shall determine the amount of any change in the taxation district's equalized valuation that results from considering the valuation represented by the taxes described under sub. (1) taxes to be shared with each taxing jurisdiction for which the taxation district collected taxes and determine the amount of taxes collected under s. 70.44 to be shared with each taxing jurisdiction for which the taxation district collected taxes. The department's determination under this subsection is subject to review only under s. 227.53.

1,102 Section 102 . 74.315 (3) of the statutes is amended to read:

74.315 (3) Notice and distribution. If the department of revenue determines under sub. (2) that the taxation district's equalized valuation changed as a result of considering the valuation represented by the taxes described under sub. (1), the The department shall notify the taxation district and the taxation district shall distribute the resulting collections under ss. 74.23 (1) (a) 5., 74.25 (1) (a) 4m., and 74.30 (1) (dm) resulting from the determinations made under sub. (2).

1,103 Section 103. 76.04 (1) of the statutes is amended to read:

76.04 (1) Every company defined in s. 76.02 shall, annually, file a true and accurate statement in such manner and form and setting forth such facts as the department shall deem necessary to enforce ss. 76.01 to 76.26. The annual reports for railroad companies shall be filed on or before April 15 and for conservation and regulation companies, air carriers and pipeline companies on or before May 1.

1,104 Section 104. 76.07 (1) of the statutes is amended to read:

76.07 (1) Duty of department. The department on or before August 1 September 15 in each year in the case of railroad companies, and on or before September 15 in the case of air carrier companies, conservation and regulation companies and pipeline companies, shall, according to its best knowledge and judgment, ascertain and determine the full market value of the property of each company within the state.

1,105 Section 105. 76.075 of the statutes is amended to read:

76.075 Adjustments of assessments. Within 4 years after the due date, or extended due date, of the report under s. 76.04, any person subject to taxation under this subchapter may request the department to make, or the department may make, an adjustment to the data under s. 76.07 (4g) or (4r) submitted by the person. If an adjustment under this section results in an increase in the tax due under this subchapter, the person shall pay the amount of the tax increase plus interest on that amount at the rate of 1 percent per month from the due date or extended due date of the report under s. 76.04 until the date of final determination and interest at the rate of 1.5 percent per month from the date of final determination until the date of payment. If an adjustment under this section results in a decrease in the tax due under this subchapter, the department shall refund the appropriate amount plus interest at the rate of 0.75 0.25 percent per month from the due date or extended due date under s. 76.04 until the date of refund. Sections 71.74 (1) and (2) and 71.75 (6) and (7), as they apply to income and franchise tax adjustments, apply to adjustments under this section. Review of the adjustments is as stated in s. 76.08.

1,106 Section 106. 76.13 (1) of the statutes is amended to read:

76.13 (1) The department shall compute and levy a tax upon the property of each company defined in s. 76.02, as assessed in the manner specified in ss. 76.07 and 76.08, at the average net rate of taxation determined under s. 76.126. The amount of tax to be paid by each such company shall be extended upon a tax roll opposite the description of the property of the respective companies. The tax rolls for all companies required to be assessed on or before August 1 in each year under s. 76.07 (1) shall be completed on or before August 10, and for all companies required to be assessed on or before September 15 in each year under s. 76.07 (1) shall be completed on or before October 1; and the department shall thereupon attach to each such roll a certificate signed by the secretary of revenue, which shall be as follows:

“I hereby certify that the foregoing tax roll includes the property of all railroad companies, air carrier companies, conservation and regulation companies or pipeline companies, as the case may be, defined in s. 76.02, liable to taxation in this state; that the valuation of the property of each company as set down in said tax roll is the full market value thereof as assessed by the department of revenue, except as changed by court judgment, and that the taxes thereon charged in said tax roll have been assessed and levied at the average net rate of taxation in this state, as required by law".

1,107 Section 107. 76.13 (3) of the statutes is amended to read:

76.13 (3) If the Dane County circuit court, after such roll is delivered to the secretary of administration, increases or decreases the assessment of any company, the department shall immediately redetermine the tax of the company on the basis of the revised assessment, and shall certify and deliver the revised assessment to the secretary of administration as a revision of the tax roll. If the amount of tax upon the assessment as determined by the court is less than the amount paid by the company, the secretary of administration shall refund the excess to the company with interest at the rate of 9 3 percent per year. If the amount of the tax upon the assessment as determined by the court is in excess of the amount of the tax as determined by the department, interest shall be paid on the additional amount at the rate of 12 percent per year from the date of entry of judgment to the date the judgment becomes final, and at 1.5 percent per month thereafter until paid.

1,108 Section 108. 76.28 (4) (b) of the statutes is amended to read:

76.28 (4) (b) In the case of overpayments of license fees by any light, heat and power company under par. (a), the department shall certify the overpayments to the department of administration, which shall audit the amount of the overpayments and the secretary of administration shall pay the amounts determined by means of the audit. All refunds of license fees under this subsection shall bear interest at the annual rate of 9 3 percent from the date of the original payment to the date when the refund is made. The time for making additional levies of license fees or claims for refunds of excess license fees paid, in respect to any year, shall be limited to 4 years after the time the report for such year was filed.

1,109 Section 109. 76.28 (11) of the statutes is amended to read:

76.28 (11) Payment before contesting. No action or proceeding, except a petition for redetermination under sub. (4), may be brought by a light, heat or power company against this state to contest any assessment of a tax under this section unless the taxpayer first pays to this state the amount of tax assessed. If the taxpayer prevails in an action or proceeding, this state shall settle with the taxpayer, including payment of interest at 9 3 percent per year on the amount of the money paid from the date of payment until the date of judgment.

1,110 Section 110. 76.39 (4) (d) of the statutes is amended to read:

76.39 (4) (d) All refunds shall be certified by the department to the department of administration which shall audit the amount of the refunds and the secretary of administration shall pay the amount, together with interest at the rate of 9 3 percent per year from the date payment was made. All additional taxes shall bear interest at the rate of 12 percent per year from the time they should have been paid to the date upon which the additional taxes shall become delinquent if unpaid.

1,111 Section 111. 76.48 (5) of the statutes is amended to read:

76.48 (5) Additional assessments may be made, if notice of such assessment is given, within 4 years of the date the annual return was filed, but if no return was filed, or if the return filed was incorrect and was filed with intent to defeat or evade the tax, an additional assessment may be made at any time upon the discovery of gross revenues by the department. Refunds may be made if a claim for the refund is filed in writing with the department within 4 years of the date the annual return was filed. Refunds shall bear interest at the rate of 9 3 percent per year and shall be certified by the department to the secretary of administration who shall audit the amounts of such overpayments and pay the amount audited. Additional assessments shall bear interest at the rate of 12 percent per year from the time they should have been paid to the date upon which they shall become delinquent if unpaid.

1,112 Section 112. 77.51 (13gm) (a) (intro.) of the statutes is renumbered 77.51 (13gm) (a) and amended to read:

77.51 (13gm) (a) “Retailer engaged in business in this state” does not include a retailer who has no activities as described in sub. (13g), except for activities described in sub. (13g) (c), unless the retailer meets either of the following criteria retailer's annual gross sales into this state exceed $100,000 in the previous year or current calendar year:.

1,113 Section 113. 77.51 (13gm) (a) 1. and 2. of the statutes are repealed.

1,114 Section 114. 77.51 (13gm) (b) of the statutes is amended to read:

77.51 (13gm) (b) If an out-of-state retailer's annual gross sales into this state exceed $100,000 in the previous calendar year or the retailer's annual number of separate sales transactions into this state is 200 or more in the previous year, the retailer shall register with the department and collect the taxes administered under s. 77.52 or 77.53 on sales sourced to this state under s. 77.522 for the entire current calendar year.

1,115 Section 115. 77.51 (13gm) (c) of the statutes is amended to read:

77.51 (13gm) (c) If an out-of-state retailer's annual gross sales into this state are $100,000 or less in the previous calendar year and the retailer's annual number of separate sales transactions into this state is less than 200 in the previous year, the retailer is not required to register with the department and collect the taxes administered under s. 77.52 or 77.53 on sales sourced to this state under s. 77.522 until the retailer's gross sales or transactions meet the criteria in par. (a) 1. or 2. exceed $100,000 for the current calendar year, at which time the retailer shall register with the department and collect the tax for the remainder of the current calendar year.

1,116 Section 116. 77.51 (13gm) (d) 1. of the statutes is repealed.

1,117 Section 117. 77.51 (13gm) (d) 2. of the statutes is amended to read:

77.51 (13gm) (d) 2. The annual amounts described in this subsection include “Gross sales” includes both taxable and nontaxable sales.

1,118 Section 118. 77.51 (13gm) (d) 3. and 4. of the statutes are repealed.

1,119 Section 119. 77.51 (13gm) (d) 5. of the statutes is amended to read:

77.51 (13gm) (d) 5. An out-of-state retailer's annual amounts gross sales include all sales into this state by the retailer on behalf of other persons and all sales into this state by another person on the retailer's behalf.

1,120 Section 120 . 77.52 (2m) (b) of the statutes is amended to read:

77.52 (2m) (b) With respect to the type of services subject to tax under sub. (2) (a) 7., 10., 11., and 20. and except as provided in s. 77.54 (60) (b) and (bm) 2., all tangible personal property or items, property, or goods under s. 77.52 sub. (1) (b), (c), or (d) physically transferred, or transferred electronically, to the customer in conjunction with the selling, performing, or furnishing of the service is a sale of tangible personal property or items, property, or goods under s. 77.52 sub. (1) (b), (c), or (d) separate from the selling, performing, or furnishing of the service, regardless of whether the purchaser claims an exemption on its purchase of the service. This paragraph does not apply to services provided by veterinarians.

1,121 Section 121 . 77.54 (6) (am) 2. of the statutes is amended to read:

77.54 (6) (am) 2. Containers, labels, sacks, cans, boxes, drums, bags or other packaging and shipping materials for use in packing, packaging or shipping tangible personal property or items or property under s. 77.52 (1) (b) or (c), if the containers, labels, sacks, cans, boxes, drums, bags, or other packaging and shipping materials are used by the purchaser to transfer merchandise to customers or physically transferred to the customer in conjunction with the selling, performing, or furnishing of the type of services under s. 77.52 (2) (a) 7., 10., 11., or 20. that are exempt from or not subject to taxation under this subchapter. This subdivision does not apply to services provided by veterinarians.

1,122 Section 122. 77.54 (9a) (f) of the statutes is amended to read:

77.54 (9a) (f) Any corporation, community chest , fund, or foundation or association organized and operated exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, except hospital service insurance corporations under s. 613.80 (2), no part of the net income of which inures to the benefit of any private stockholder, shareholder, member or corporation that is exempt from federal income tax under section 501 (c) (3) of the Internal Revenue Code and has received a determination letter from the internal revenue service. The exemption under this paragraph applies to churches and religious organizations that meet the requirements of section 501 (c) (3) but are not required to apply for and obtain tax-exempt status from the internal revenue service.

1,123 Section 123 . 77.54 (9m) of the statutes is amended to read:

77.54 (9m) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, or items or property under s. 77.52 (1) (b) or (c), sold to a construction contractor that, in fulfillment of a real property construction activity, transfers the tangible personal property, or items or property under s. 77.52 (1) (b) or (c), to an entity described under sub. (9a) (b), (c), (d), (em), (f), or (fc) or (9g), a technical college district, the University of Wisconsin Hospitals and Clinics Authority, the Board of Regents of the University of Wisconsin System, an institution, as defined in s. 36.05 (9), a college campus, as defined in s. 36.05 (6m), or the University of Wisconsin-Extension, if such tangible personal property, or items or property, becomes a component of a facility in this state that is owned by the entity. In this subsection, “facility" means any building, shelter, parking lot, parking garage, athletic field, athletic park, storm sewer, water supply system, or sewerage and waste water treatment facility, but does not include a highway, street, or road.

1,124 Section 124. 77.61 (5) (b) 8m. of the statutes is created to read:

77.61 (5) (b) 8m. The state auditor and the employees of the legislative audit bureau to the extent necessary for the bureau to carry out its duties under s. 13.94.

1,125 Section 125. 79.02 (1) of the statutes is amended to read:

79.02 (1) The Except as provided in sub. (2) (b), the department of administration, upon certification by the department of revenue, shall distribute shared revenue payments to each municipality and county on the 4th Monday in July and the 3rd Monday in November.

1,126 Section 126. 79.02 (2) (b) of the statutes is amended to read:

79.02 (2) (b) Subject to ss. 59.605 (4) and 70.995 (14) (b), payments in July shall equal 15 percent of the municipality's or county's estimated payments under ss. 79.035 and 79.04 and 100 percent of the municipality's estimated payments under s. 79.05. Upon certification by the department of revenue, the estimated payment under s. 79.05 may be distributed before the 4th Monday in July.

1,127 Section 127. 79.02 (3) (a) of the statutes is amended to read:

79.02 (3) (a) Subject to s. 59.605 (4), payments to each municipality and county in November shall equal that municipality's or county's entitlement under ss. 79.035, 79.04, and 79.05 for the current year, minus the amount distributed to the municipality or county in July under sub. (2) (b).

1,128 Section 128. 79.02 (3) (e) of the statutes is amended to read:

79.02 (3) (e) For the distribution in 2004 and subsequent years, the total amount of the November payments to each county and municipality under s. 79.035 sub. (1) shall be reduced by an amount equal to the amount of supplements paid from the appropriation accounts under s. 20.435 (4) (b) and (gm) that the county or municipality received for the fiscal year in which a payment is made under this section, as determined under s. 49.45 (51).

1,129 Section 129. 79.035 (6) of the statutes is amended to read:

79.035 (6) Beginning with the distributions in 2016 and ending with the distributions in 2035, the annual payment under this section s. 79.02 (1) to a county in which a sports and entertainment arena, as defined in s. 229.41 (11e), is located shall be the amount otherwise determined for the county under this section, minus $4,000,000.

1,130 Section 130. 79.035 (7) (b) of the statutes is amended to read:

79.035 (7) (b) Beginning with the first payment due under this section s. 79.02 (1) after the county or municipality receives a grant under s. 16.047 (4m), the department of administration shall apply the reduction determined under par. (a) for each county and municipality by reducing 10 consecutive annual payments under this section s. 79.02 (1) to the county or municipality by equal amounts. If in any year the reduction under this paragraph for a county or municipality exceeds the payment under this section for the county or municipality, the department of administration shall apply the excess amount of the reduction to the payment to the county or municipality under s. 79.04.

1,131 Section 131 . 79.05 (1) (am) of the statutes is amended to read:

79.05 (1) (am) “Inflation factor" means a percentage equal to the average annual percentage change in the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, for the 12 months ending on September 30 August 31 of the year before the statement under s. 79.015, except that the percentage under this paragraph shall not be less than zero.

1,132 Section 132 . 79.05 (2m) of the statutes is amended to read:

79.05 (2m) Annually, on November October 1, the department of revenue shall certify the appropriate percentage change in the consumer price index that is to be used in the requirement under sub. (1) (am) to the joint committee on finance.

1,133 Section 133. Initial applicability.

(1) Homestead credit. The treatment of ss. 71.52 (1g) and 71.55 (10) first applies to claims filed for taxable years beginning after December 31, 2020.

(2) Retirement income exclusion. The treatment of ss. 71.05 (1) (ae), (am), and (an) and (6) (b) 54. and 71.83 (1) (a) 6. and the amendment of s. 71.05 (6) (b) 4. (as it relates to the retirement income exclusion) first apply to taxable years beginning after December 31, 2020.

(3) Reductions in shared revenue. The treatment of ss. 48.561 (3) (a) 3. and (b), 66.0602 (6) (a) and (b), 66.1105 (6m) (d) 4., 70.855 (4) (b), 70.995 (14) (b), 79.02 (3) (e), and 79.035 (6) and (7) (b) first applies to the distributions made in the year following publication.

(4) Interest rate on utility tax refunds. The treatment of ss. 76.075, 76.13 (3), 76.28 (4) (b) and (11), 76.39 (4) (d), and 76.48 (5) first applies to refunds paid on the effective date of this subsection regardless of the taxable periods to which the refunds pertain.

(5) Property of a church or religious association. The treatment of s. 70.11 (4) (b) 3. first applies to the property tax assessments as of January 1, 2021.

(6) University of Wisconsin Hospitals and Clinics Authority. The treatment of s. 77.54 (9m) first applies to contracts entered into on the effective date of this subsection.

(6m) Income from grants. The treatment of ss. 71.05 (1) (hn), 71.26 (3) (ag) 3. and (L), 71.34 (1k) (ah), and 71.45 (1) (dm) and (2) (a) 23. first applies to taxable years beginning after December 31, 2019, and before January 1, 2022.

(7) Income from the coronavirus relief fund. The treatment of ss. 71.05 (1) (h), 71.26 (3) (ag) 2. and (L), 71.34 (1k) (af), and 71.45 (1) (d) and (2) (a) 22. first applies to taxable years beginning after December 31, 2018.

1,134 Section 134. Effective dates. This act takes effect on the day after publication, except as follows:

(1) Objections to manufacturing assessments. The treatment of s. 70.995 (8) (c) 1. and (d) takes effect on the first January 1 after publication.

(2) Board of review training. The treatment of s. 70.46 (4) takes effect on the first January 1 after publication.

(3) Omitted property. The treatment of s. 74.315 (1), (1m), (2), and (3) takes effect on the first January 1 after publication.

(4) Assessor certification fees. The treatment of s. 73.09 (4) (c) and (5) takes effect on the first January 1 after publication.